MINDANAO is strengthening its role as a center of industry and innovation with the upcoming construction of a new power substation inside the Anflo Industrial Estate (AIE) in Panabo City, Davao del Norte.
On August 19, 2025, Anflo Industrial Estate (AIE) and Davao Light and Power Company (Davao Light) signed a Memorandum of Agreement (MOA) at The Vessel inside the estate, formalizing their partnership to build the facility that will provide reliable and cost-efficient energy for the fast-growing economic zone.
The 63-hectare AIE, developed by Damosa Land, Inc. (DLI) and accredited by the Philippine Economic Zone Authority (PEZA), has grown into a bustling industrial hub with over 22 locators from six countries. Industries inside the estate include solar panel manufacturing, agribusiness, food processing, packaging, cold storage, and construction materials. Strategically located just 300 meters from the Davao International Container Terminal, AIE combines world-class facilities with strong logistics support, making it one of Mindanao’s top investment destinations.
Among its anchor locators is HEAD Sport Philippines, Inc., which opened the world’s largest tennis ball manufacturing facility in January 2025. The five-hectare plant is projected to produce up to 14 million dozen tennis balls annually, or about 60 percent of the brand’s global supply, generating over 700 direct jobs and hundreds more in support services.
AIE continues to draw diverse investments. In February 2025, Thai Coconut Public Company Limited (COCOCO) committed around P740 million for a coconut milk production facility expected to yield 155,000 tons yearly by early 2026. In July, Damosa Land and Manila Water Philippine Ventures inaugurated a water treatment plant capable of processing 2,300 cubic meters of raw water daily, ensuring a reliable supply for locators.
DLI president Ricardo Lagdameo said the new substation complements these developments.
“This initiative will provide stability and cost-efficiency to our locators while also benefiting nearby communities. It gives our estate and our partners the confidence to expand further and explore opportunities that will impact not just Davao del Norte, but the entire region,” he said.
Davao Light senior assistant vice president for Panabo and Davao del Norte Arnel D. Bersabe added that the power facility is designed as a long-term solution to support business continuity and strengthen energy reliability in surrounding communities.
The project also marks Davao Light’s deeper expansion into Davao del Norte and parts of Davao de Oro, following the passage of Republic Act 12144 in April 2025. The law transferred Panabo City, Tagum City, Samal Island, and nearby towns to Davao Light’s franchise area from the Northern Davao Electric Cooperative (Nordeco). While Nordeco has challenged the measure before the Supreme Court, consumer groups largely favor the shift. A May 2025 survey by the Davao Consumer Movement found 97.5 percent support in Davao del Norte and 80 percent in Davao de Oro, citing Davao Light’s better reliability and service.
With locators such as HEAD Sport, COCOCO, Tide Solar, and other agro-industrial and logistics firms, AIE now employs more than 1,300 workers and continues to attract new investors. The upcoming substation is expected to be a key driver of this growth, aligning the estate’s power supply with the demands of global-scale industries.
As AIE expands, it is not only reshaping Panabo City and Davao del Norte but also elevating Mindanao’s profile as a rising hub for investment and innovation, an industrial gateway that connects the region to the world. DEF